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HomeMy Public PortalAbout06.21.2016 Special City Council Meeting PacketMEDIIVA SPECIAL MEETING AGENDA MEDINA CITY COUNCIL Tuesday, June 21, 2016 6:00 P.M. Medina City Hall 2052 County Road 24 I. Call to Order II. Elm Creek Watershed Update (15 minutes) III. 2017 Budget — General Fund (45 minutes) IV. Adjourn Posted 6/17/2016 MEMORANDUM TO: Medina City Council FROM: Scott Johnson, City Administrator DATE OF REPORT: June 14, 2016 DATE OF MEETING: June 21, 2016 SUBJECT: June 21, 2016 Work Session — 6:00 PM Work Session 6:00 PM Elm Creek Watershed Update (15 minutes) Elm Creek Chair Doug Baines and Medina Commissioner Liz Weir will be present at the meeting to provide information and answer questions. 2017 Budget — General Fund (45 minutes) Staff will present information on the proposed general fund budget for 2017. Staff is proposing a 1.6% increase for total debt service and capital levies. This includes a 3% increase for the general fund levy. However, the increases are off -set by the property value increases in Medina (approximately 6.2% increase for 2017). The proposed 2017 tax rate for Medina is 22.269%. The proposed tax rate is a 4.6% decrease from 2016 (23.342%). Information has also been included on fire department contract increases for 2017. • Reserve Fund — The Fire Review Board agreed to reduce the reserve fund amount to $55,000 from $100,000 through a 1st amendment to the contract. Mayor Mitchell and Council Member Pederson did not support a letter amending the agreement. I will work with City Attorney Ron Batty to put together a 1st amendment to the contract. • Relief Pension $38,000 ($2,500) — held flat since 2012 at $35,500 • Capital Equipment Plan — Hamel FD has recommended shifting their rodeo ($7,000 per year) and charitable gambling funds ($18,000) over a three year period from their operating budget to their capital budget. This would shift approximately $7,000 in 2017, $7,500 in 2018, and $7,500 in 2019 from the operating budget to the capital budget. Hamel FD has a number of trucks that need to be replaced due to age in the 10 year CIP. The approach is similar to what we have done with our budget to split out the cost for elections and funding our comprehensive plan. This avoids funding spikes with capital for future budgets, provides more buy -in from Hamel FD on fundraising (they can identify which piece of equipment they need to help fund), and can help residents understand where their contributions are going (not just to keep the lights on at the fire station). I think this is a better approach with this funding source. Erin is recommending that we put charitable gambling/rodeo funds in capital because fund raising is volatile and we need more certainty with their operating budget. Medina would stay level at $73,000 Staff is requesting Council review and feedback on the proposed General Fund Budget. CITY OF MEDINA GENERAL FUND PRELIMINARY 2017 BUDGET 2014 Budget REVENUES & OTHER FINANCING SOURCES: 2014 Actual 2015 Budget 2015 Actual 2016 Budget 2017 Amount Percentage 2016 Prelim Increase Increase YTD Budget (Decrease) (Decrease) 1 Property Tax Levy 2,807,902 2,735,154 2,892,139 2,842,655 3,043,667 0 3,134,977 91,310 3.0% 2 Other Taxes 20,000 79,267 30,000 83,935 30,000 0 30,000 0 0.0% 3 Licenses and Permits 340,200 658,453 371,800 632,699 371,800 265,333 372,800 1,000 0.3% 4 Intergovernmental 182,202 239,117 207,618 245,648 220,618 45,269 220,618 0 0.0% 5 Charges for Services 113,291 119,859 109,900 133,799 114,964 75,676 112,831 (2,133) -1.9% 6 Fines and Forfeitures 161,000 114,365 163,000 97,441 115,000 39,991 115,000 0 0.0% 7 Special Assessments 1,000 15 1,000 0 1,000 0 1,000 0 0.0% 8 Miscellaneous 137,680 195,193 138,300 158,681 144,881 133,204 149,344 4,463 3.1% 9 Sale of Assets 0 512 300 0 300 0 300 0 0.0% 10 Transfers In 199,900 199,900 205,450 205,450 211,164 0 217,048 5,884 2.8% 11 Total Revenues & Other Financing Sources 3,963,175 4,341,835 4,119,507 4,400,308 4,253,394 559,474 4,353,918 100,524 2.4% EXPENDITURES & OTHER FINANCING USES: General Government: 12 Mayor&Council 25,143 26,106 25,144 25,178 25,144 10,146 26,293 1,149 4.6% 13 Administration 583,347 566,543 559,890 534,956 586,815 171,066 580,884 (5,931) -1.0% 14 Elections 13,000 14,083 4,700 4,866 16,900 1,069 10,900 (6,000) -35.5% 15 Assessing 78,025 82,201 81,300 85,414 85,500 29,144 87,500 2,000 2.3% 16 Planning & Zoning 169,871 180,655 176,204 183,234 188,407 65,891 194,162 5,755 3.1% 17 Comprehensive Plan 0 0 0 25,490 8,000 12,003 8,000 0 0.0% 18 Data Processing 65,350 65,850 68,350 62,090 71,850 20,821 72,850 1,000 1.4% 19 Police/Public Works Facility 85,822 65,431 100,400 67,124 70,400 25,842 70,400 0 0.0% 20 Municipal Building 38,900 40,351 37,600 44,861 43,200 15,210 46,400 3,200 7.4% 21 Unallocated 39,500 49,578 0 2,455 2,300 2,100 2,300 0 0.0% 22 Total General Government 1,098,958 1,090,799 1,053,588 1,035,667 1,098,516 353,291 1,099,689 1,173 0.1% Public Safety: 23 Police 1,500,053 1,481,174 1,562,435 1,506,006 1,585,729 516,307 1,620,434 34,705 2.2% 24 Police Records Management 8,000 9,568 8,650 8,144 8,650 8,216 8,850 200 2.3% 25 Fire 332,800 341,031 360,600 371,731 373,550 121,675 389,172 15,622 4.2% 26 Building Inspections 249,785 307,407 274,117 333,263 295,391 114,875 301,172 5,781 2.0% 27 Emergency Management 5,200 4,334 5,200 4,490 5,200 6,208 5,200 0 0.0% 28 Total Public Safety 2,095,838 2,143,513 2,211,002 2,223,635 2,268,520 767,280 2,324,828 56,308 2.5% Public Works: 29 Public Works 595,767 635,203 647,313 654,195 681,533 140,610 708,162 26,629 3.9% 30 Sanitation & Recycling 14,180 11,120 14,543 11,607 15,057 4,697 15,640 583 3.9% 31 Total Public Works 609,947 646,322 661,856 665,802 696,590 145,307 723,801 27,211 3.9% Parks & Recreation: 32 Community Building 28,715 41,079 27,847 30,785 34,764 8,364 34,214 (550) -1.6% 33 Parks 127,717 112,055 163,214 152,936 153,004 39,234 169,386 16,382 10.7% 34 Total Parks & Recreation 156,432 153,134 191,061 183,721 187,768 47,598 203,600 15,832 8.4% 35 Transfers Out 2,000 857,000 2,000 3,081 2,000 0 2,000 0 0.0% 36 Total Expenditures & Other Financing Uses 3,963,175 4,890,767 4,119,507 4,111,906 4,253,394 1,313,476 4,353,918 100,524 2.4% EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) 37 EXPENDITURES AND OTHER FINANCING USES (0) (548,932) 0 288,402 0 (754,002) 0 0 N/A City of Medina 2017 Proposed Property Tax Scenario Residential Homesteads SCENARIO - GENERAL FUND LEVY PLUS 3.0% 2016 Budget 2017 Proposed 2016-2017 Change Citv Tax Rate: 23.342% 22.269% -4.6% General Fund Levy: $3,043,667 $3,134,977 $91,310 Debt Service & Capital Levies: $704,982 $674,001 ($30,981) Total Levv: $3,748,649 $3,808,978 $60,329 Change in Total Levy: 1.6% 2016 CITY PROPERTY TAXES Homestead City Local City Market Market Value Tax Tax Capacity Property Value Exclusion Capacity Rate Taxes 2016 2016 2016 Pay 2016 2016 $100,000 ($28,200) $718 23.342% $168 $200,000 ($19,200) $1,808 23.342% $422 $300,000 ($10,200) $2,898 23.342% $676 $400,000 ($1,200) $3,988 23.342% $931 $500,000 $0 $5,000 23.342% $1,167 $600,000 $0 $6,250 23.342% $1,459 $750,000 $0 $8,125 23.342% $1,897 $800,000 $0 $8,750 23.342% $2,042 $900,000 $0 $10,000 23.342% $2,334 $1,000,000 $0 $11,250 23.342% $2,626 2017 CITY PROPERTY TAXES (WITH NO MARKET VALUE CHANGE) Markel Homestead City Local City Property Percentage Value Market Value Tax Tax Capacity Property Taxes Tax 2017 Exclusion Capacity Rate Taxes Increase Increase NO CHANGE 2017 2017 Pay 2017 2017 (Decrease) (Decrease) $100,000 (528,200) $718 22.269% $160 ($8) -4.6% $200,000 ($19,200) $1,808 22.269% $403 ($19) -4.6% $300,000 ($10,200) $2,898 22.269% $645 ($31) -4.6% $400,000 ($1,200) $3,988 22.269% $888 ($43) -4.6% $500,000 $0 $5,000 22.269% $1,113 ($54) -4.6% $600,000 $0 $6,250 22.269% $1,392 ($67) -4.6% $750,000 $0 $8,125 22.269% $1,809 ($87) -4.6% $800,000 $0 $8,750 22.269% $1,949 ($94) -4.6% $900,000 $0 $10,000 22.269% $2,227 ($107) -4.6% $1,000,000 $0 $11,250 22.269% $2,505 ($121) -4.6% 2017 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) Markel Value 2,017 INCREASE OF 5.0% Homestead City Local City Property Percentage Market Value Tax Tax Capacity Property Taxes Tax Exclusion Capacity Rate Taxes Increase Increase 2017 2017 Pay 2017 _ 2017 _ (Decrease) (Decrease) $105,000 ($27,800) $772 22.269% $172 $4 2.6% $210,000 ($18,300) $1,917 22.269% $427 $5 1.2% $315,000 ($8,900) $3,061 22.269% $682 $5 0.8% $420,000 $0 $4,200 22.269% $935 $4 0.5% $525,000 $0 $5,313 22.269% $1,183 $16 1.4% $630,000 $0 $6,625 22.269% $1,475 $16 1.1% $787,500 $0 $8,594 22.269% $1,914 $17 0.9% $840,000 $0 $9,250 22.269% $2,060 $17 0.9% $945,000 $0 $10,563 22.269% $2,352 $18 0.8% $1,050,000 $0 $11,875 22.269% $2,644 $19 0.7% City of Medina Property Tax Levies 2017 Proposed 1 General Fund Levy 2 3 Debt Service & Capital Levies: 4 5 Public Works and Police Department Facility: 6 7 2012A G.O. Capital Improvement Plan (CIP) Bonds - $6.1 million 8 2013A G.O. Refunding Bonds (2007A recharacterized CIP portion) 9 10 Total Public Works and Police Department Facility 11 12 Other Debt Service & Capital Levies: 13 14 2010A G.O. Improvement Bonds - Holy Name Drive and Pioneer Trail 15 2011A G.O. Bonds - Hunter Drive South 16 2011 B Taxable G.O. Improvement Bonds - Hunter Drive North 17 2015A G.O. Improvement Bonds - Tower Drive 19 Capital Equipment Fund Levy 20 21 Total Other Debt Service & Capital Levies 22 23 Total Debt Service & Capital Levies 24 25 Total Levies Proposed Pay Pay 2016 2017 3,043,667 3,134,977 Amount Increase (Decrease) 91,310 Percentage Increase (Decrease) 3.0% 248,325 130,137 246,120 132,069 (2,205) 1,932 -0.9% 1.5% 378,462 29,500 13,000 56,000 93,520 134,500 378,189 29,500 13,500 57,000 61,312 134,500 (273) 0 500 1,000 (32,208) 0 -0.1 % 0.0% 3.8% 1.8% -34.4% 0.0% 326,520 704,982 295,812 674,001 3,748,649 3,808,978 (30,708) (30,981) -9.4% -4.4% 60,329 1.6% 1 Member introduced the following resolution and moved its adoption: CITY OF MEDINA RESOLUTION NO. 2016- RESOLUTION APPROVING PROPOSED TRANSFERS AND ASSIGNMENT OF FUND RESERVES WHEREAS, for 12/31/15, the fund balance goal is $1,772,248 (using 5/12 of 2016 budgeted expenditures of $4,253,394). The General fund balance at 12/31/15 was $2,391,059 or $618,811 above the goal; $288,108 being surplus from 2015 and the remaining $330,703 reserves. BE IT RESOLVED, by the city council of the City of Medina, County of Hennepin, Minnesota, that the following actions be: $200,000 be Transferred from the General Fund to the following funds: - Equipment Replacement Fund: $130,000 for Police and Public Works equipment - Road Fund: $70,000 to assist financing upcoming road projects. $205,000 be Assigned from General Fund reserves: - $125,000 for quiet zone at the railroad crossing at Hwy 55 and CR 116. - $80,000 for potential legal fees. $40,000 be Reassigned from General Fund reserves: - Reassign $40,000 for health insurance self -insure buy -in (no longer needed) to retirement liability for post -retirement benefits. Date: June 21, 2016 Bob Mitchell, Mayor ATTEST: Resolution No. 2016- June 21, 2016 Jodi M. Gallup, City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: And the following voted against same: Whereupon said resolution was declared duly passed and adopted. Resolution No. 2016- 2 June 21, 2016 FIRE CONTRACT DETAIL OPERATING 2014 2015 2016 Proposed 2017 Hamel $ 169,400.00 60.04% $ 195,115.00 63.76% $ 202,215.00 64.61% $ 221,000.00 65.16% Loretto $ 83,266.00 29.51% $ 80,575.16 26.33% $ 79,978.87 25.56% $ 86,393.33 25.47% Long Lake I $ 24,220.00 8.58% $ 24,977.00 8.16% $ 25,263.00 8.07% $ 26,111.00 7.70% Maple Plain $ 5,238.30 1.86% $ 5,342.00 1.75% $ 5,502.26 1.76% $ 5,667.33 1.67% $ 282,124.30 $ 306,009.16 $ 312,959.13 $ 339,171.66 CAPITAL Hamel $ 60,000.00 71.57% $ 60,000.00 71.43% $ 70,000.00 57.82% $ 73,000.00 60.68% Loretto $ 17,839.00 21.28% $ 18,000.00 21.43% $ 22,600.50 18.67% $ 21,315.00 17.72% Long Lake I $ 6,000.00 7.16% $ 6,000.00 7.14% $ 28,459.00 23.51% $ 25,994.00 21.61% Maple Plain $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 83,839.00 $ 84,000.00 $ 121,059.50 $ 120,309.00 TOTAL CONTRACT Hamel $ 229,400.00 62.68% Loretto $ 101,105.00 27.63% Long Lake I $ 30,220.00 8.26% Maple Plain $ 5,238.30 1.43% $ 365,963.30 MARKET VALUE2 Hamel Loretto Long Lake Maple Plain CALLS3 Hamel Loretto Long Lake Maple Plain $ 255,115.00 65.41% $ 272,215.00 62.72% $ 294,000.00 67.84% $ 98,575.16 25.28% $ 102,579.37 23.63% $ 107,708.33 24.85% $ 30,977.00 7.94% $ 53,722.00 12.38% $ 25,994.00 6.00% $ 5,342.00 1.37% $ 5,502.26 1.27% $ 5,667.33 1.31% $ 390,009.16 $ 434,018.63 $ 433,369.66 7IMAnalytics by Function i 2014 898,302,000 72.17%1 192,634,000 15.48% 143,825,400 11.56% 9,866,100 0.79% 1,244,627,500 2014 166 68.31% 55 22.63% 17 7.00% 5 2.06% 243 2015 998,102,800 73.25% 199,230,100 14.62% 151,783,800 11.14% 13,522,300 0.99% 1,362,639,000 2015 155 68.28% 52 22.91 % 17 7.49% 3 1.32% 227 CONSUMER PRICE INDEX (CPI-U)4 (June -June) 2014 2015 1st Half 2013 228.473 1st Half 2014 1st Half 2014 231.764 1st Half 2015 % Change from % Change from Prior Year 1.44% Prior Year 231.764 229.374 -1.03% i i 2016 1,091,236,400 74.32% 201,880,400 13.75% 160,510,500 10.93% 14,678,000 1.00% 1,468,305,300 2016 165 71.43% 45 19.48% 18 7.79% 3 1.30% 231 2016 list Half 2015 1st Half 2016 % Change from Prior Year 229.374 2013 Capital was combined with operating budget. 2 Market Values are based on prior year valuations. Pertains to Hamel, Loretto & Long Lake contract: 3 Call numbers come from prior year actuals. Pertains to Hamel, Loretto & Long Lake contracts. °Consumer Price Index from US Dept of Labor, Minn / St Paul, All Urban Cunsumers (CPI-U), June to June. Base Year 1982-1984 = 100. Pertains to Maple Plain Fire Contract. i i 2017 1,159,793,700 74.28% 211,332,400 13.53% 175,143,000 11.22°/0 15,182,100 0.97% 1,561,451,200 Proposed 2017 Proposed 2017 1st Half 2016 1st Half 2017 % Change from Prior Year Data reviewed by Mayor Mitchell, Administrator Johnson, Finance Director Barnhart and Financial Consultant Joe Rigdon. Revised 5/25/2016 Analytics by Function WPM POPULATION° Hamel Loretto Long Lake Maple Plain HOUSEHOLDS5 Hamel Loretto Long Lake Maple Plain 2014 4,280 73.41 % 800 13.72% 651 11.17%I 99 1.70% 5,830 2014 PER CAPITA6 2014 Hamel $ 40 Loretto $ 104 Long Lake $ 37 Maple Plain $ 53 234 PARCELS' Hamel Loretto Long Lake Maple Plain 2015 4,507 74.09%1 811 13.33 % 662 10.88% 103 1.69 % 6,083 2016 Proposed 2017 4,814 74.87% 826 12.84% 683 10.62% 107 1.66% 6,430 0 2015 2016 Proposed 2017 1,533 74.09% 1,621 74.87% 276 13.34% 278 12.84% 225 10.87% 230 10.62% 35 1.69% 36 1.66% 2,069 2,165 0 2015 2016 Proposed 2017 16.93% $ 43 18.64% $ 42 18.48% 44.52% $ 99 42.78% $ 97 42.61 15.91 % $ 38 16.25% $ 37 16.27% 22.63% $ 52 22.33% $ 51 22.64% $ 232 227 0 2014 2015 2016 Proposed 2017 BUILDING PERMITS ISSUED 2014 2015 2016 YTD Proposed 2017 # Value # Value # Value # Value Single Family 82 $35,179,120 76 $26,473,596 33 $15,195,473 Multi Family 1 $500,000 1 $956,000 Commercial/Indistrial 0 0 1 $691,640 83 $35,679,120 77 $27,429,596 34 $15,887,113 0 MEDINA COST OF LIVING ADJUSTMENT (COLA)5 2014 SOCIAL SECURITY COST OF LIVING ADJUSTMENT (CPI- W)9 (Sept -Sept) 2014 2.00%1 2015 2.00%1 2015 2016 2.00%I 2016 Proposed 2017 Proposed 2017 1.50%I I 1.70%I I 0.00%I 0.00 % ' Population is mathmatically estimated by district. 5 Households are mathmatically estimated by district. per capita figures because doing so would over compensate several of the departments if based solely on population, rather than compensating by actual services rendered. For example, Loretto would be undercompensated based on the actual number of calls (52) they responded to in 2015 because Maple Plain would be overcompensated based on the number of actual calls (3) in 2015. To use per capita as a means of setting a contract amount there would need to be a valid benchmark to measure against and The City also wants all properties regardless of size or population to have adequate fire services. The City is confident in our current practice of determining contracts based on analytics of market value, calls and Consumer Price Index and do ' Parcels are mathmatically estimated by district 6 Medina Annual COLA (determined by MN Cities comparison - information compiled by League of MN Cities). 9 Social Security Annual COLA (determined by Consumer Price Index (CPI-W) Sept. of prior year to Sept. of current year). 1982- Data reviewed by Mayor Mitchell, Administrator Johnson, Finance Director Barnhart and Financial Consultant Joe Rigdon. Revised 5/25/2016 Hamel Volunteer Fire Depart. MN Ch. 317A Non-profit corporation Date Medina's contract with Hamel is dated 12-20-13 Term The initial term is 2 years from 1-1-14 to 12-31-15 Renewal The term is automatically renewed for successive 2 year terms. Termination w/o Cause Either party may give a 1 year or more advance written notice of termination. No such notice was given on or before 12-31-14, so the contract is renewed for 2 years from 1-1-15 to 12-31-16. Within the 2015 to 2016 term, either party may still terminate on 1 year's advance written notice. Termination w/ Cause The contract may be terminated for cause. Budget/Allocation By June 1st, the Hamel Volunteer Fire Dept. gives Medina: 1) An operating budget for the next year; 2) A capital budget for the next year. Medina Council ratifies "the budgets proposed." Recent Budgets 2014: General $169,400 Capital $60,000 2015: General $196,115 Capital: $60,000 2016: General $202,215 Capital: $70,000 2017: General $221,000 Capital: $73,000 If costs shared 50% allocated to market valuation 50% allocated to call hours spent in fire service area *In 2009 the equation changed from 70% Market Value, 30% Call Hours Budget History w/Corcoran: For 2011: Corcoran: $41,722.08 Medina: $132,931.92 For 2012: Corcoran: $47,647.07 Medina: $135,739.63 For 2013: Corcoran: $49,421.79 Medina: $143,134.25 Loretto Volunteer Fire Depart. MN Ch. 317A Non-profit Corporation Date Medina's contract with Loretto is dated 1-1-13 Term The initial term is 3 years from 1-1-13 to 12-31-15 Renewal The term is automatically renewed for successive 3 year terms. Termination w/o Cause Either party may give a 1 year or more advance written notice of termination. No such notice was given on or before 12-31-14, so the contract is renewed for 3 years from 1-1-15 to 12-31-17. Within the 2015 to 2017 term, either party may still terminate on 1 year's advance written notice. Termination w/ Cause The contract may be terminated for cause at least (90) days prior to date of termination. Budget/Allocation The cost of Contracted Services to the Cities shall be determined by formula for each calendar year during the term of the Agreement, using the Cost Allocation Data described in Exhibit D of the contract. Estimated market value of all properties that are not tax-exempt within the Fire Service Area will determine 50% of the cost, and average usage of Contracted Services over the three (3) most recent calendar years will determine 50% of the cost allocated to each Contracting City. The source of estimated market value shall be amounts compiled by the office of the Hennepin County Assessor and provided to the Department by the Contracting Cities prior to July 1 of each year during the term of this Agreement and any extended or renewal term. Percent Breakdown of Budget by City Greenfield Corcoran Independence Medina Loretto Medina's Recent Budget Shares 15% 31% 19% 25% 10% 2013: $96,537 (includes Capital) 2014: General $83,266 Capital $17,839 2015: General $80,575 Capital $18,000 2016: General $79,978.87 Capital $22,600.50 2017: General $86,393.33 Capital $21,315 Maple Plain Fire Depart. City Department Date Medina's contract with Maple Plain is dated 10-15-13 Term The initial term is 2 years from 1-1-16 to 12-31-17 Renewal The term is automatically renewed for successive 2 year terms. Termination w/o Cause Medina or Maple Plain may choose to terminate its participation in the Agreement provided that such termination be effective on January 1 of the subsequent year preceded by a minimum six-month written notice. Termination w/ Cause Immediate termination may occur for breach of contract following written notice. Budget/Allocation The base compensation for the budget is an annual amount equal to the previous year's Base Compensation plus the year's annual Consumer Price Index (CPI) percent increase for the Minneapolis -St. Paul Metro area as published by the U.S. Department of Labor Bureau of Labor Statistics, but not less than a 2% increase and not to exceed a 5% increase. Plus, an hourly rate equal to $160.00 for each call hour serviced in Medina by Maple Plain which exceeds 100 call hours in each calendar year. Medina's Recent Budget Shares 2013: $5,135 2014: $5,238 2015: $5,342 2016: $5,502 2017: $5,667 Long Lake Fire Depart. City Department Date Medina's contract with Long Lake is dated 10-15-02 Term The initial term is 20 years from 1-1-02 to 12-31-20 Renewal The term is automatically renewed for successive 5 year terms. Termination w/o Cause For breach of contract. By mutual agreement of all cities covered by the agreement. City of Medina may terminate its participation in this Agreement without cause, subject to providing a twenty-four month notice of termination. This agreement may be renegotiated or terminated by the cities to enable participation in a fire district or similar organizational arrangement. Termination w/ Cause For "Good Cause" by any city that desires to terminate its participation in the Agreement provided that such termination is preceded by a minimum of 36 months notice. "Good Cause" shall mean, but is not limited to, a pattern of inadequate service quality; including inadequate response to call, inadequate training, and inadequate handling of calls; and/or a pattern of budget overruns. Budget/Allocation Each of the Contracting Cities receiving fire services from the Long Lake Fire Department shall pay a share of the costs of the Annual Fire Services Operating and Capital Budgets. The City's Budget Share will be based upon a formula, which takes into account the Market Value of the protected property and the fire department staff resources utilized to protect the property. The objective is to fairly allocate "insurance" type costs and "effort and variable" type costs. The Contracting Cities have agreed that 70% of the share allocation will be based upon Market Value and 30% upon fire departments hours expended on calls to the City Fire Service Area. Percent Breakdown of Budget by City Long Lake 11% Medina 5% Orono 84% Medina's Recent Budget Shares 2013: $24,420 2014: General $24,220 2015: General $24,977 2016: General $25,263 2017: General $26,111 Capital: $5,248 (actual collected) Capital: $6,000 (actual collected) Capital $7,000 (actual collected) Capital $25,994 HFD Proposed 2017 Operating Budget Details (updated 5/19/16) 2016 Budget 2017 Proposed Budget Delta Comments ADMIN 12,500 13,500 1,000 Increased costs for bienneial physicals DEBT SERVICE BLDG 7,800 7,800 - DUES & SUBSCRIPTIONS 2,000 2,500 500 EQUIPMENT 10,500 11,000 500 FIRE PREVENTION 2,000 3,000 1,000 Build up FP program for Medina FUEL 6,500 6,500 - INCIDENT CONSUMABLES 2,000 2,000 - INSURANCE 19,000 19,000 - PAYROLL WAGES 61,000 62,500 1,500 DO Truck and higher per call wages PAYROLL TAXES (UI/FICA) 4,000 4,200 350 RADIO/COMM EXPENSES 13,215 13,500 285 RELIEF (PENSION) 35,500 38,000 2,500 Held flat since 2012 EQUIP MAINTENANCE 30,500 31,500 1,000 SCBA Turnout Gear Maint program TRAINING TOTAL 17,000 18,000 1,000 Contiunue to meet NFPA/State Requirements UTILITIES TOTAL 9,700 10,000 300 ANNUAL OPERATING EXPENSE 233,215 243,000 9,935 4.2% increase in operating expenses Training Reimbursements (MBFTE) Rodeo Fundraising Charitable Gambling Public Donations Grants Other NON -FEE FUNDING Municipal Fees (Operations) 4,000 7,000 18,000 1,000 1,000 4,000 18,000 (7,000) (1,000) (1,000) State Training Reimbursements Rodeo proceeds to Capital Chartitable Gambling phases out by 2020 Possible, not planned Possible, not planned Possible, not planned 31,000I 22,000I (9,000)1 202,215 I 221,000 1 18,785 1 ANNUAL OPERATING INCOME 233,215 243,000 9,785 Page 1 of 1 Created: 5/19/2016 HFD Proposed 2017 Capital Budget Details (updated 5/19/16) Equipment Capital Cost 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Ongoing PPE Replacment 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Engine 12 Replacement 350,000 30,269 30,269 30,269 30,269 30,269 30,269 30,269 30,269 30,269 30,269 30,269 Command Vehicle Replacement 50,000 10,799 10,799 10,799 10,799 10,799 Utility 12 Replacement 50,000 10,799 10,799 10,799 10,799 10,799 Tanker 12 Replacement (used apparatus) 150,000 51,973 51,973 51,973 Utility 11 Replacement 250,000 21,620 21,620 21,620 21,620 21,620 21,620 21,620 Rescue 11 Replacement 225,000 19,458 19,458 19,458 19,458 Engine 11 Replacement 500,000 Tanker 11 Replacement 275,000 Medina Annual Capital Outlay 70,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000 75,000 75,000 75,000 HFD Capital Contributions (NOTE 1) 7,000 15,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Minimum Capital Contrbutions 70,000 80,000 88,000 98,000 98,000 98,000 98,000 98,000 100,000 100,000 100,000 Other Possble Sources of Capital: Grants Donations Fundraising Other NOTE 1: Only possible with agreement to redirect fundraising and charitable gambling proceeds from operating income to capital contribution £ l0Z! l Zl8 aalaaaip Ames o4gnd Aq payuan seuepunoq lowsn £30Z'ZZ lsn6ny :amp deyl ad Weld aldeW"..� 111•111MMtr ad o4eJoi ad aAei 6uoi 1.7174111�jj Porant.N1.fF Od loweH OlafMm pueBei deN VAIIQ31AI � ai.w.w.w.w WM ti.m.m.uF Nusiiis _ ; "s caa,��vle ad lavreli mOJERIMM I3!{b �1471f6 l411 S.(" mum �INNp.Ip Y wle61iO1 ]Ny4 F ti 46.1inl.PII.minu I 011,1/01 t+leld aide w --a Li y 3,4